S. 1126Senate112th Congress (2011-2013)In Committee

REAL Act of 2011

Introduced May 26, 2011

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Energy and Natural Resources. (text of measure as introduced: CR S3442-3444)

May 26, 2011

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SenateIntro Referral

Introduced in Senate

May 26, 2011

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S3442)

May 26, 2011

SenateIntro Referral

Read twice and referred to the Committee on Energy and Natural Resources. (text of measure as introduced: CR S3442-3444)

May 26, 2011

Floor Debate

21 members

What members said about S. 1126 on the floor

7 Republicans14 Democrats
John D. Rockefeller IV
Sen. John D. Rockefeller IVD-WV · May 26, 2011

Mr. President, when Congress passed the Trade Act of 2002, we made a promise to American workers that the potential loss of jobs due to trade policy will not equal the loss of health care coverage.…

Ron Wyden
Sen. Ron WydenD-OR · May 26, 2011

Mr. President, President, I rise today to introduce the Enforcing Orders and Reducing Circumvention and Evasion Act, or the ENFORCE Act, of 2011. For almost a century, Democratic and Republican…

Susan M. Collins
Sen. Susan M. CollinsR-ME · May 26, 2011

Mr. President, I rise today to introduce the Keeping Politics Out of Federal Contracting Act of 2011. This bill would prohibit Federal agencies from collecting or using information about political…

Mitch McConnell
Sen. Mitch McConnellR-KY · May 26, 2011

Mr. President, I rise today to introduce the Veterans Health Care Improvement Act of 2011. As we all know, the Department of Veterans Affairs strives to provide the best possible health care for our…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · May 26, 2011

Mr. President, earlier this month, the President requested that Congress provide a limited exception to the statutory limit on the service of the FBI Director in order to allow Robert Mueller to…

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Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · May 26, 2011

Mr. President, I rise today to introduce the Propane Green Autogas Solutions Act of 2011. I am pleased to note that the junior Senators from Missouri, Mr. Blunt, and Michigan, Ms. Stabenow, are…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · May 26, 2011

Mr. President, I rise again today with my friend and colleague from Kentucky, Senator McConnell, to submit the joint resolution to renew the import ban on Burma for another year. We are proud to be…

Chuck Grassley
Sen. Chuck GrassleyR-IA · May 26, 2011

Mr. President, the Federal Bureau of Investigation is on the front line in defending our country from terrorists, spies, and criminals. The FBI has a long history dating back over 100 years. The FBI…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · May 26, 2011

Mr. President, I rise today to join with Senator Stabenow of Michigan to introduce The Preservation of Access to Osteoporosis Testing for Medicare Beneficiaries Act of 2011. The companion bill in the…

James M. Inhofe
Sen. James M. InhofeR-OK · May 26, 2011

Mr. President, I have introduced a bill, S. 1085. I have some cosponsors, including Senator Snowe from Maine. The bill addresses something that has become very controversial. It is certainly not…

Sheldon Whitehouse
Sen. Sheldon WhitehouseD-RI · May 26, 2011

Mr. President, I rise today to introduce the Renewable Energy Access through Leasing Act of 2011 or the REAL Act of 2011. I'd like to thank Senator Lamar Alexander and Senator Mark Udall for joining…

Sheldon Whitehouse
Sen. Sheldon WhitehouseD-RI · May 26, 2011

Mr. President, I rise today to introduce the Renewable Energy Access through Leasing Act of 2011 or the REAL Act of 2011. I'd like to thank Senator Lamar Alexander and Senator Mark Udall for joining…

Herb Kohl
Sen. Herb KohlD-WI · May 26, 2011

Mr. President, I rise today with Senator Graham to introduce the Justice for Troops Act. This legislation offers a simple solution to a serious problem that affects the well-being of our troops and…

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Richard J. Durbin
Sen. Richard J. DurbinD-IL · May 26, 2011

Mr. President, over the past year, students in Illinois have told me their stories of leaving some for-profit colleges with mountains of student loan debt and no job prospects. The students who find…

John F. Kerry
Sen. John F. KerryD-MA · May 26, 2011

Mr. President, today I am introducing the Retiree Health Coverage Protection Act to provide an additional $5 billion for the Early Retiree Reinsurance Program, EERP, to allow more employers to…

Tom Harkin
Sen. Tom HarkinD-IA · May 26, 2011

Mr. President, I have come to the floor, today, to introduce the Eunice Kennedy Shriver Act. I am very pleased that Senator Blunt has joined me in introducing this legislation; he and I are both…

Barbara Boxer
Sen. Barbara BoxerD-CA · May 26, 2011

Mr. President, as we recognize Older Americans Month this May it is important that we commit to meeting the needs of older Americans to live longer and healthier lives. Our aging population is…

Daniel K. Inouye
Sen. Daniel K. InouyeD-HI · May 26, 2011

Mr. President, I am pleased to introduce the Trash Free Seas Act of 2011, a bill to reauthorize and strengthen the Marine Debris Research, Prevention, and Reduction Act, MDRPRA. This act, of which I…

Daniel K. Akaka
Sen. Daniel K. AkakaD-HI · May 26, 2011

Mr. President, I rise today to speak about legislation that would remove the obstacles preventing Filipino veterans of World War II from being united with their children, a situation whose roots…

Michael B. Enzi
Sen. Michael B. EnziR-WY · May 26, 2011

Mr. President, I rise today to introduce the Small Business Fairness Act. I want to first thank my colleague Senator Casey from Pennsylvania for cosponsoring this important legislation with me.…

Mark Udall
Sen. Mark UdallD-CO · May 26, 2011

Mr. President, I rise to speak about a bill that is born from the forward-thinking ideas of my constituents, a bill that will help spur our Nation's new energy economy and create jobs: the Solar…

John Boozman
Sen. John BoozmanR-AR · May 26, 2011

Mr. President, it has been brought to my attention that certain Continuing Care Retirement Communities and Life Care Communities are required to pay a provider tax despite the fact that they provide…

Bill Text

Latest available legislative text

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Introduced in SenateIssued May 26, 2011

II

112th CONGRESS

1st Session

S. 1126

IN THE SENATE OF THE UNITED STATES

May 26, 2011

Mr. Whitehouse (for himself, Mr. Alexander, and Mr. Udall of Colorado) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources

A BILL

To amend the Energy Independence and Security Act of 2007 to authorize the Secretary of Energy to insure loans for financing of renewable energy systems leased for residential use, and for other purposes.

1.

Short title

This Act may be cited as the Renewable Energy Access through Leasing Act of 2011 or the REAL Act of 2011.

2.

Loans for financing of renewable energy systems leased for residential use

Subtitle A of title IV of the Energy Independence and Security Act of 2007 is amended by inserting after section 413 (42 U.S.C. 17071) the following:

414.

Loans for financing of renewable energy systems leased for residential use

(a)

Purposes

The purposes of this section are—

(1)

to encourage residential use of renewable energy systems by minimizing upfront costs and providing immediate utility cost savings to consumers through leasing of those systems to homeowners;

(2)

to reduce carbon emissions and the use of nonrenewable resources;

(3)

to encourage energy-efficient residential construction and rehabilitation;

(4)

to encourage the use of renewable resources by homeowners;

(5)

to minimize the impact of development on the environment;

(6)

to reduce consumer utility costs; and

(7)

to encourage private investment in the green economy.

(b)

Definitions

In this section:

(1)

Authorized renewable energy lender

The term authorized renewable energy lender means a lender authorized by the Secretary to make a loan under this section.

(2)

Renewable energy system lease

The term renewable system energy lease means an agreement between an authorized renewable energy system owner and a homeowner for a term of not less than 5 years, under which the homeowner—

(A)

grants an easement to the renewable energy system owner to install, maintain, use, and otherwise access the renewable energy system; and

(B)

agrees to—

(i)

lease the use of the system from the renewable energy system owner; or

(ii)

a power purchase agreement.

(3)

Renewable energy manufacturer

The term renewable energy manufacturer means a manufacturer of renewable energy systems.

(4)

Renewable energy system

The term renewable energy system means a system of energy derived from—

(A)

a wind, solar (including photovoltaic and solar thermal), biomass (including biodiesel), or geothermal source; or

(B)

hydrogen derived from biomass or water using an energy source described in subparagraph (A).

(5)

Renewable energy system owner

The term renewable energy system owner means a homebuilder, a manufacturer or installer of a renewable energy system, or any other person, as determined by the Secretary.

(c)

Authority

(1)

In general

The Secretary may, on application by an authorized renewable energy system owner, insure or make a commitment to insure a loan made by an authorized renewable energy lender to a renewable energy system owner to finance the acquisition of a renewable energy system for lease to a homeowner for use at the residence of the homeowner.

(2)

Terms and conditions

The Secretary may prescribe such terms and conditions for insurance under paragraph (1) as are consistent with the purposes of this section.

(d)

Limitation on principal amount

(1)

Limitation

The principal amount of a loan insured under this section shall not exceed the residual value of the renewable energy system to be acquired with the loan.

(2)

Residual value

For purposes of this subsection—

(A)

the residual value of a renewable energy system shall be the fair market value of the future revenue stream from the sale of the expected remaining electricity production from the system, pursuant to the easement granted in accordance with subsection (e); and

(B)

the fair market value of the future revenue stream for each year of the remaining life of the renewable energy system shall be determined based on the net present value of the power output production warranty for the renewable energy system provided by the renewable energy manufacturer and the forecast of regional residential electricity prices made by the Energy Information Administration of the Department.

(e)

Easement

(1)

In general

The Secretary may not insure a loan under this section unless the renewable energy system owner certifies, in accordance with such requirements as the Secretary shall establish, consistent with the purposes of this section, that the renewable energy system financed will be leased only to a homeowner that grants an easement to install, maintain, use, and otherwise access the renewable energy system that includes the right to sell electricity produced during the life of the renewable energy system to a wholesale or retail electrical power grid.

(2)

Assumable lease

The renewable energy system lease shall specify that the renewable energy system lease can be assumed by new homeowners.

(f)

Discount or prepayment

(1)

In general

To encourage the use of renewable energy systems, the Secretary shall ensure that a discount given to a homeowner by a renewable energy system owner or other investor or prepayment of a renewable energy system lease by a renewable energy system owner does not adversely affect the mortgage requirements of the homeowner.

(2)

Consultation

In carrying out this subsection, the Secretary may consult with agencies and entities involved in oversight of home mortgages.

(g)

Eligibility of lenders

The Secretary may not insure a loan under this section unless the lender making the loan is an institution that meets such requirements as the Secretary shall establish for participation of renewable energy lenders in the program under this section.

(h)

Certificate of insurance

(1)

In general

The Secretary shall issue to a lender that is insured under this section a certificate that serves as evidence of insurance coverage under this section.

(2)

Contents of certificate

The certificate required under paragraph (1) shall describe the fair market value of the future revenue stream for each year of the remaining life of the renewable energy system.

(3)

Full Faith and Credit

The certificate required under paragraph (1) shall be backed by the full faith and credit of the United States.

(i)

Payment of insurance claim

(1)

Filing of claim

The Secretary shall provide for the filing of claims for insurance under this section and the payment of the claims.

(2)

Payment of claim

A claim under paragraph (1) may be paid only on a default under the loan insured under this section and the assignment, transfer, and delivery to the Secretary of—

(A)

all rights and interests arising under the loan; and

(B)

all claims of the lender or the assigns of the lender against the borrower or others arising under the loan transaction.

(3)

Lien

(A)

In general

On payment of a claim for insurance of a loan under this section, the Secretary shall hold a lien on the underlying renewable energy system assets and any associated revenue stream from the use of the system, which shall be superior to all other liens on the assets.

(B)

Residual value

The residual value of the renewable energy system and the revenue stream from the use of the system shall be not less than the unpaid balance of the loan amount covered by the certificate of insurance.

(C)

Revenue from sale

The Secretary shall be entitled to any revenue generated by the renewable energy system from selling electricity to the grid when an insurance claim has been paid out.

(j)

Assignment and transferability of insurance

A renewable energy system owner or an authorized renewable energy lender that is insured under this section may assign or transfer the insurance, in whole or in part, to another owner or lender, subject to such requirements as the Secretary may prescribe.

(k)

Premiums and charges

(1)

Insurance premiums

(A)

In general

The Secretary shall fix and collect premiums for insurance of loans under this section, that shall be—

(i)

paid by the applicant renewable energy system owner at the time of issuance of the certificate of insurance to the lender; and

(ii)

adequate, as determined by the Secretary, to cover the expenses and probable losses of administering the program under this section.

(B)

Deposit of premium

The Secretary shall deposit any premiums collected under this subsection in the Renewable Energy Lease Insurance Fund established by subsection (l).

(2)

Prohibition on other charges

Except as provided in paragraph (1), the Secretary may not assess any other fee (including a user fee), insurance premium, or charge in connection with loan insurance provided under this section.

(l)

Renewable Energy Lease Insurance Fund

(1)

Fund Established

There is established in the Treasury of the United States the Renewable Energy Lease Insurance Fund (referred to in this subsection as the Fund), which shall be available to the Secretary without fiscal year limitation, for the purpose of providing insurance under this section.

(2)

Credits

The Fund shall be credited with—

(A)

any premiums collected under subsection (k)(1);

(B)

any amounts collected by the Secretary under subsection (i)(3); and

(C)

any associated interest or earnings.

(3)

Availability

Amounts in the Fund shall be available to the Secretary for—

(A)

fulfilling any obligations with respect to insurance for loans provided under this section; and

(B)

paying administrative expenses in connection with this section.

(4)

Excess amounts

The Secretary may invest in obligations of the United States any amounts in the Fund determined by the Secretary to be in excess of amounts required at the time of the determination to carry out this section.

(m)

Ineligibility for Purchase by Federal Financing Bank

Notwithstanding any other provision of law, no debt obligation that is insured or committed to be insured by the Secretary under this section shall be subject to the Federal Financing Bank Act of 1973 (12 U.S.C. 2281 et seq.).

(n)

Regulations

(1)

In general

The Secretary shall issue such regulations as are necessary to carry out this section.

(2)

Multifamily housing

In issuing the regulations, the Secretary shall ensure that multifamily housing units are eligible for programs established by this section.

(3)

Timing

Not later than 180 days after the date of enactment of this section, the Secretary shall issue interim or final regulations.

(o)

Termination of authority

The authority of the Secretary to insure and make commitments to insure new loans under this section shall terminate on the date that is 10 years after the date of enactment of this section.

.